PLAZACORP WILLOWGROVE RESIDENTIAL REAL ESTATE DEVELOPMENT TRUST ANNOUNCES ENTRY INTO BINDING COMMITMENT LETTER FOR DEVELOPMENT FINANCING AND RELEASE OF PROCEEDS FROM ESCROW

TORONTO, Feb. 5, 2025 /CNW/ - Plazacorp Willowgrove Residential Real Estate Development Trust (the "REDT") announced today that its subsidiary Plazacorp Willowgrove Residential REDT Holding LP (the "Holding LP") has entered into a binding commitment letter with a Canadian mortgage investment corporation (the "Lender") pursuant to which the REDT has obtained a commitment from the Lender to advance a new land loan and servicing loan (together, the "Loan") for financing the development of the REDT's project (the "Project") to develop two residential subdivisions comprising 676 residences (467 townhomes and 209 single detached homes) and 297 serviced lots on 213 acres of land in Markham and Stouffville, Ontario.

The Loan will be secured by a first mortgage on a portion of the Stouffville portion of the Project and a second mortgage on the remaining portion of the Stouffville portion of the Project and on the Markham portion of the Project. The Loan is interest only and has a term of twenty-four months following the start date of the initial advance thereunder, and prepayable without penalty after six months.

By obtaining the Loan, together with the existing land loan from a Canadian financial institution on the Markham portion of the Project, the REDT has secured a loan or a commitment for an aggregate of $115.0 million in land loans and $50.0 million in a servicing facility (collectively, the "Debt Financing"). The Debt Financing satisfies the condition to release from escrow of the remaining proceeds (the "Escrow Proceeds") from the REDT's initial public offering, which closed on December 31, 2024. The Escrow Proceeds have been released to the Holding LP, the direct beneficial owner of the Project, and the escrow agreement has now terminated.

The REDT intends to use the proceeds of the Loan and the Escrow Proceeds to repay certain indebtedness associated with the Project and to fund servicing and development of the Project.

Plazacorp Willowgrove Residential Real Estate Development Trust

Plazacorp Willowgrove Residential Real Estate Development Trust was established for the primary purpose of indirectly owning an interest in a project to develop two residential subdivisions comprising 676 residences (467 townhomes and 209 single detached homes) and 297 serviced lots on 213 acres of land in Markham and Stouffville, Ontario.

Forward-Looking Statements

This news release contains statements that include forward-looking information within the meaning of Canadian securities laws. These forward-looking statements reflect the current expectations of the REDT regarding future events, including statements concerning the development of the Project and the use of proceeds of the Loan and the Escrow Proceeds. In some cases, forward-looking statements can be identified by terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "seek", "aim", "estimate", "target", "project", "predict", "forecast", "potential", "continue", "likely", "schedule", or the negative thereof or other similar expressions concerning matters that are not historical facts.

Material factors and assumptions used by management of the REDT to develop the forward-looking information include, but are not limited to, the REDT's current expectations about: construction and development risk; obtaining necessary development permits for the Project; the realization of property value appreciation and timing thereof; the inventory of residential properties; competition from developers of residential properties; the Markham and Stouffville, Ontario real estate markets; government legal and regulatory changes; property encumbrances relating to the Project; closing and other transaction costs in connection with the acquisition and disposition of the Project; the availability of financing and current interest rates; the ability of the REDT to satisfy the conditions of the Loan; the Canadian economic environment; the geographic concentration of the REDT's business; demand levels for residential properties in Markham and Stouffville, Ontario and local economic conditions; and negative geopolitical events. While management of the REDT considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.

Although management believes the expectations reflected in such forward-looking statements are reasonable and represent the REDT's internal projections, expectations and beliefs at this time, such statements involve known and unknown risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities may not be achieved. A variety of factors, many of which are beyond the REDT's control, could cause actual results in future periods to differ materially from current expectations of estimated or anticipated events or results expressed or implied by such forward-looking statements. Such factors include the risks identified in the REDT's final prospectus, including under the heading "Risk Factors" therein. Readers are cautioned against placing undue reliance on forward-looking statements. Except as required by applicable Canadian securities laws, the REDT undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Additional information regarding Plazacorp Willowgrove Residential Real Estate Development Trust is available at www.plazaredt.com and on www.sedarplus.com.

SOURCE Plazacorp Willowgrove Residential Real Estate Development Trust

Jayne Jones, Executive Assistant, Plazacorp Investments Limited, Phone: [phone], Email: [email protected]